79 per cent of property owners to switch if negative gearing ditched: REIQ
Posted on: 5 May 2016
79 per cent of property owners to switch if negative gearing ditched: REIQ
"At a time when Australia needs to desperately replace the growth in our economy that had come from the mining industry, it appears "reckless" to pamper with the construction industry that is providing growth".
A state-wide survey of the Real Estate Institute of Queensland's members and landlord clients, found that 79 per cent of property investors would abandon property as an investment strategy if Labor's negative gearing changes were brought in.
REIQ chairman Rob Honeycombe said the findings of the survey sent to more than 14,000 members confirmed that changes to negative gearing would be disastrous for the Queensland property market.
"We now know for a fact that 79 per cent of respondents will get out of property and find an alternative investment strategy that works more effectively and yields a better return," Mr Honeycombe said.
"That will have a crippling effect on house values and on the rental market, where the private rental market plays such a critical role in keeping rents affordable."
This week the Grattan Institute suggested that 2 per cent of value would be wiped off housing values if negative gearing was curbed.
Mr Honeycombe said that would represent around $130 billion in value, deleted instantly based on CoreLogic estimates that residential real estate in Australia is valued at about $6 trillion.
"The impact of this on the broader economy would be far-reaching."
